LONDON (Alliance News) - UTV Media PLC Thursday lowered its revenue forecasts for 2015 by around GBP2.5 million due to slower start of the year in its newly launched UTV Ireland business, and posted a rise in revenue for its first quarter.
In the quarter to end-March the company posted a rise in revenue to GBP29.7 million from GBP27.9 million, as growth in its Television segment offset declines in its Radio Ireland business, and its Radio GB business was flat.
Radio Ireland was hit by the strength of sterling, and at constant currency rates were flat. It expects revenue in this segment to rise 1% at constant currency in the second quarter, and drop 10% at actual exchange rates.
Television revenue rose 25%, driven by the launch of Dublin-based start-up station UTV Ireland. Net advertising revenue growth of 7% in its London office and 8% in its Dublin office were offset by reduced local government advertising spend in its Belfast office, UTV said.
For the second quarter, it expects television revenue to rise 37%, with core television boosted by the inclusion of UTV Ireland but with Northern Ireland Television operations net advertising revenue to be down 4%, the London office down 1% and Irish offices down 13%.
The company said its UTV Ireland business has seen a slower start to the year, and, as it is still very early in the life of the business, there is "considerably volatility" in its performance. As a result, it has reduced its revenue forecasts, but said "the strategic logic of UTV Ireland in creating leading television operations throughout Ireland remains clear."
In UTV's Radio GB segment, revenue was unchanged, as its talkSPORT revenue fell 1% due to the previous year being boosted by the World Cup. In the second quarter, it expects revenue for this segment to fall 16% against "particularly strong comparatives".
UTV will announce its interim results August 25.
Shares in UTV are trading down 6.8% at 165.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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